U.S. existing home sales took off in March to their highest pace in over 10 years, and severe supply shortages resulted in homes selling much faster than in February and a year ago, according to the National Association of Realtors.
March's sales pace is 5.9 percent above a year ago and surpasses January as the strongest month of sales since February 2007. The median existing home price for all housing types in March was up 6.8 percent from March 2016. March's price increase marks the 61st consecutive month of year-over-year gains.
The available home inventory at the end of March increased 5.8 percent to 1.83 million existing homes available for sale, but is still 6.6 percent lower than a year ago and has fallen year-over-year for 22 straight months. Properties were on the market an average of 34 days in March, which is down significantly from 45 days in February and 47 days a year ago. Forty-eight percent of homes sold in March were on the market for less than a month.
In the Midwest, existing-home sales jumped 9.2 percent to an annual rate of 1.31 million in March, and are now 3.1 percent above a year ago. The median price in the Midwest was $183,000, up 6.2 percent from a year ago.
Interest rates have been inching up since last fall. The average commitment rate for a 30-year, conventional, fixed-rate mortgage rose for the fifth straight month in March to 4.20 percent from 4.17 percent in February. The average commitment rate for all of 2016 was 3.65 percent.
Meanwhile, at Lake of the Ozarks, the number of homes coming on the market in 2017 has decreased by 4.6 percent compared to the same time in 2016 while the amount of closed sales increased 15.2 percent and pending sales are up 15.3 percent. The median sales price also rose by 6 percent.
2017 condo inventory coming on the market is currently even with 2016 numbers and the median sales price dropped by 1 percent. The total units sold increased 6.7 percent and pending sales are up 5.45 percent.
With the rapidly moving market and rising prices; it can be difficult to determine value for both buyers and sellers. A good market analysis should include the most recent sales of the homes closest and most like your home. In addition, it should also factor in the sales trends happening at the lake and in your neighborhood as well as considering the home’s features and potential drawbacks that add or detract from its worth.
Sales data obtained from the Lake of the Ozarks MLS comparing the time frame from January 1 to April 23 of 2016 and 2017 and from the National Association of Realtors.
Michael Elliott has been selling real estate at the Lake of the Ozarks since 1981. He is one of the most respected brokers in the area. If you have interest in a career in real estate or would like Michael’s assistance in the sale or purchase of property, you can reach him at 573.365.SOLD or firstname.lastname@example.org View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com